Bangalore, Ho Chi Minh City and Shanghai are racing ahead in their speed of development as real estate markets and has room to grow when it comes to attracting investment proportionate to their gross domestic product (GDP)

The severe shortage of office space in Hyderabad, pegged at a low 9% in a recent industry report, could led to a steep rise in the city's commercial leasing rates this year, predict market analysts. Only behind Bengaluru (4%) and Pune (5%), the vacancy levels in Hyderabad, at present, stand way lower than other metro cities like Mumbai, Delhi, Chennai and Kolkata, according to a survey conducted by Jones Lang LaSalle, the global real estate services firm. This is indicative of a “good supply-demand equilibrium“ in the IT hub, compared to other markets in the country, the report highlights.

The trend is likely to continue as capital flows are likely to increase with newer financing channels entering the market, encouraged by policy changes such as the Real Estate Regulatory Act, which will improve transparency.